Variable universal life insurance offers the potential to build cash value based on the performance of the investment options you choose.
The policy offers greater growth potential when the markets perform well. The tradeoff for this growth is the investment risk – including the potential to lose cash value when markets perform poorly.
Variable universal life insurance benefits
- Lifetime protection for your loved ones
- Flexible premiums allow you to adjust your payments, or you can choose a fixed, consistent amount
- Ability to adjust your benefit amount to align with your changing life.
- Greater tax-deferred cash value growth potential than non-variable products
- Choice of investment options based on your risk tolerance
Variable universal life insurance considerations
- If you do not pay enough premium, the policy may lapse
- Involves market risk, including loss of principal; sustained market declines can negatively impact policy cash value
- Loans and withdrawals will impact both the death benefit and policy surrender value
- Adjusting benefit amounts may require additional underwriting